Supplier Guiding Principles

The Coca-Cola Company's Supplier Guiding Principles (SGP) communicate to suppliers to The Coca-Cola Company and suppliers authorized by The Coca-Cola Company our values and expectations and emphasize the importance of responsible environmental and workplace policies and practices that comply, at a minimum, with applicable local laws and regulations. Recognizing that there are differences in laws, customs and economic conditions that affect business practices around the world, we expect our suppliers to follow the spirit and intent of applicable laws and regulations, as well as the Company's SGP.

The SGP are a vital pillar of our Company’s efforts to ensure that our business partners respect labor rights. They contain requirements that our suppliers must comply with regarding freedom of association and collective bargaining; prohibition of child labor; prohibition of forced labor and abuse of labor; elimination of discrimination; work hours and wages; provision of a safe and healthy workplace; and protection of the environment.

The SGP are implemented through: a) open communications to all existing and potential suppliers of TCCC around the world; b) making them part of all agreements and purchase orders with every direct supplier to TCCC; and, c) assessing suppliers of packaging, ingredients and trademarked materials for compliance with the minimum requirements, with a focus on correction of shortfalls.

The person within the Company who authorizes and/or selects the supplier is held accountable for supplier compliance. Division Presidents and appropriate function leaders of TCCC are responsible for ensuring that their people are following internal processes and continuously improving performance. In addition, our Global Labor Relations and Workplace Accountability group is responsible for policy and process design, implementation support and overall governance.

TCCC expects suppliers to develop and implement appropriate internal business processes to ensure compliance with the SGPs, and to demonstrate compliance with the SGPs at the request and satisfaction of the Company. TCCC routinely utilizes independent third-parties to assess suppliers' compliance with the SGPs, and the assessments generally include confidential interviews with employees and on-site contract workers. If a supplier fails to uphold any aspect of the SGP requirements, the supplier is expected to implement corrective actions. The Company reserves the right to terminate an agreement with any supplier that cannot demonstrate that they are upholding the SGP requirements and has done so.

675 supplier personnel were trained in 2006 as opposed to 150 personnel in 2005, a 350 percent increase. We also assessed 1,029 supplier facilities as compared to 1,016 in 2005, a one percent increase. Corrective actions were required for issues identified during the assessment.